DISCLAIMER - First Real Estate Investment Trustfirstreit.listedcompany.com/newsroom/20170921_174331_AW9U_57... · DISCLAIMER This presentation ... Keraton Wolio Fort Source: First

DISCLAIMER

This presentation has been prepared by Bowsprit Capital Corporation Limited, in its capacity as the manager of First Real Estate InvestmentTrust (“First REIT” and as manager of First REIT, the “Manager”).

Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may onlydeal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

The value of units in First REIT (“Units”) and the income from them may fall as well as rise. Units are not obligations of, deposits in, orguaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of theprincipal amount invested.

This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties based on the Manager’scurrent view of future events. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of risks, uncertainties and assumptions – representative examples include, without limitation, generaleconomic and industry conditions, interest rate trends, cost of capital, capital availability, shifts in expected levels of property rentalincome, change in operating expenses, property expenses and government and public policy changes and continued availability offinancing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on theseforward-looking statements, which are based on the Manager’s current view of future events.

The past performance of First REIT is not necessarily indicative of the future performance of First REIT.

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Siloam Hospitals Buton & Lippo Plaza Buton

PROPOSED ACQUISITION

Siloam Hospitals Buton & Lippo Plaza Buton

PROPOSED ACQUISITION

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The Buton Property is located in the city of Bau Bau in Buton Island. Bau Bau is a port city situated between West and East of

Indonesia. The regional government has put in place transportation infrastructure such as seaports and airport for greater

regional accessibility. Bau Bau has a well-established fishery industry supported by the local government that caters to bothlocal and regional trade.

Siloam Hospitals Buton is currently the newest and most advanced hospital facility on Buton Island while Lippo Plaza Buton

is the only modern mall within Bau Bau city.

Java

SumatraKalimantan

Palembang

Jakarta

Surabaya

Bali

Sulawesi

Makassar

Manado

Labuan Bajo

WHERE IS BAU BAU?

FIRST REIT ASSETS IN SULAWESI

(A) Siloam Hospitals Manado & Hotel Aryaduta Manado1

(B) Siloam Hospitals Makassar1

Note1 Siloam Hospitals Manado & Hotel Aryaduta Manado together with Siloam Hospitals

Makassar were acquired in November 2012.

A

B

Source: First REIT, d-maps.com

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BAU BAUKEY LANDMARKS

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2

3

1

Nirwana Beach

Murhum Port

Keraton Wolio Fort

Tirta Rimba WaterfallSource: First REIT, Google Maps

General Location Map of Bau Bau City

1

3

2

4

Bau Bau is a port city with various natural

and historical attractions.

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PROPOSED ACQUISITION BUTON PROPERTY

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Property Type Hospital & Mall Master Lessees PT Lippo Karawaci Tbk and PT Bina Bahtera Sejati1 (Lessees of SHBN)

PT Andromeda Sakti2 (Lessee of LPB)

Purchase Consideration

S$28.50 million Base Rent SHBN – Initial base rent of S$1,600,000 per annumLPB – Initial base rent of S$1,242,000 per annum9.97% rental yield

Valuations S$28.50 million by Rengganis3

S$29.20 million by Alberth4Base Rent Escalation

Takes effect from the sixth year and for subsequent years of both masterleases at a rate equal to 2x percentage increase of Singapore CPI, capped at2%For each five-year period after the initial five-year period, the increase issubject to a further cap of 5%.

Discount to Valuation

2.40%(based on higher of 2 valuations)

Variable Rent Takes effect from the sixth year and for subsequent years of the SHBNMaster Lease based on SHBN Gross Operating Revenue growth

Financing Drawdown of committed debtand internal cash

Lease Term 15 years with option to renew for a further 15 years

Property Title BOT Agreement expiring on 15 June 2044

1 PT Bina Bahtera Sejati is a wholly owned subsidiary of PT Siloam International Hospitals Tbk2 PT Andromeda Sakti is the vendor and wholly owned subsidiary of PT Lippo Karawaci Tbk3 KJPP Rengganis, Hamid & Rekan in strategic alliance with CBRE Pte. Ltd., appraised as at 1 May 20174 KJPP Rinaldi, Alberth, Baroto & Partners., appraised as at 1 May 2017

BUTON PROPERTY PROPERTY DETAILS

SHBN is a newly-built three-storey standalonehospital with maximum capacity of 160 beds thatcommenced operations in April 2016.

LPB is a single storey newly built standalone retailmall, which commenced operations in December2015 and provides complementary amenities topatients and visitors of SHBN.

Some medical facilities available include operatingtheatres, fast response ambulance services, deliveryrooms, outpatient clinics, inpatient services,intensive care unit (ICU), Neonatal ICU, X-raymachine, 16-slice CT Scanner, haemodialysis, andultrasonography amongst others.

Various medical services offered include Neurology,General Surgery, Internal Medicine, Paediatrics,Obstetrics & Gynaecology, Radiology, ENT Specialitiesand Ophthalmology amongst others.

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Jalan Sultan Hasanuddin No. 50,52,54,58, Bau Bau, Sulawesi Tenggara, Indonesia

Established 2016 Land Area 21,874 sqm

Hospital Beds 160 Gross Floor Area 21,934 sqm

Property Classification Hospital & Mall Centre of Excellence Emergency & Trauma (Hospital Only)

BUTON PROPERTY LOCATION MAP OF SHBN COMETITORS

2

1

RSUD Kota Baubau2

Rumah Sakit Murhum1

Siloam Hospitals Buton is currently the newest and most advanced hospital facility on Buton Island.

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Source: First REIT, Google Maps

BUTON PROPERTYTARGET CATCHMENT AREA OF SHBN

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Source: Google, Frost & Sullivan

BUTON REGENCY

Siloam Hospitals Buton will be the main referral hospital for Buton Island with the

most advanced and comprehensive medical equipment and services.

BUTON PROPERTYSHBN TARGET CATCHMENT AREA ANALYSIS

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Source: Frost & Sullivan

Catchment Area

Population (2016) Target Patients Key Services Required

Bau Bau 154,877• Low to high income

population

• Gynaecology & Obstetrics , Paediatrics,

Internal Medicine

• Diagnostic services such as CT Scanning

equipment

• Haemodialysis

• Emergency & Trauma services

Buton Island

(Excluding Bau

Bau)

524,300• Low to high income

population

• Diagnostic services such as CT Scan,

• Haemodialysis

• Emergency & Trauma

Advanced Healthcare Services by Siloam Hospitals

Most advanced hospital in ButonRegency, operated by the renown SiloamHospitals Group.

Strategic geographical location of Bau Bau

Bau Bau is an established port citywith transportation and fisheryinfrastructure that serves East andWest Indonesia.

Outlook

SHBN will be the main referral hospital forButon Island.

SILOAM HOSPITALS BUTONKEY DIFFERENTIATORS

Source: Frost & Sullivan

Pillars of SHBN’s Differentiation Strategy

Excellence in Emergency Services

● Well-equipped Emergency & Trauma Department

- Only hospital in the Bau Bauwith a Rapid Response System

● Dedicated hotline for immediate ambulance dispatch service

Comprehensive Equipment & Technologies

● SHBN is the first healthcare provider with a CT scanner and haemodialysis services in Buton Island

Robust Doctor Partnership Program

● SHBN provides attractive remuneration packages, employee benefits, and career development opportunities as incentives to retain its medical personnel

Building on Siloam’s existing Regional Infrastructure & Network

● SHBN has the ability to leverage on the strengths of its parent company’s expertise and networks through SHG or Lippo Group

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BUTON PROPERTYLOCATION MAP OF LPB COMPETITORS

2 1

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Jl. Wolter Mongonsidi Market2Karya Nughara Traditional Market1

Laelangi Traditional Market3 UMNA Wolio Plaza4

Compared to existing retail options, Lippo Plaza Buton is the only modern mall within Bau Bau city.

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Source: First REIT, Google Maps

KEY MERITS OF THE BUTON PROPERTY ACQUISITION

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1. An attractive and high quality property in the new locality of Bau Bau

• The Buton Property, comprising Siloam Hospitals Buton (SHBN) and Lippo Plaza Buton (LPB), is located in aport city geographically situated between West and East Indonesia. SHBN will serve the needs of the peoplearound Buton Island and will be the main referral hospital on Buton Island.

• SHBN is well-positioned for all income segments of the healthcare market.

• LPB is the only modern mall within Bau Bau city.

• Purchase consideration at 1.21% discount to average valuation.

2. Increased income stability through the Buton Property Master Leases and increase in WALE

• New Master Lease will provide stability to First REIT’s Gross Rental Income over the next 15 years (and asubsequent 15 years or up to the termination of the BOT Agreement whichever is earlier).

• Weighted average lease to expiry of the portfolio will increase from 10.0 years to 10.3 years as at 31December 2016.

3. Increased asset base will raise First REIT’s profile among global investors and increasedportfolio size in terms of lettable floor area, property income and number of beds will enhancecompetitive positioning and ability to pursue future acquisitions

• Asset size will grow from S$1.27 billion (as at 31 December 2016) to S$1.30 billion.

• Total GFA will grow from 314,311 sq m to 338,245 sq m.

• Maximum number of hospital beds for the Indonesia properties will increase from 3,373 to 3,533.

KEY MERITS OF THE BUTON PROPERTY ACQUISITION

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4. Diversification of First REIT’s portfolio across locations and medical specialisations

• SHBN is modern and is fitted with medical facilities with various medical services offered.

• Proposed acquisition allows diversification across geographical location and medical specialisations.

5. Reduction in the weighted average age of the properties in the portfolio as the ButonProperty is newly built

• Weighted average age of properties will decrease from 10.1 years to 9.5 years as at 31 December 2016.

FINANCIAL HIGHLIGHTS

Siloam Hospitals Lippo Village

PRO FORMA FINANCIAL EFFECTS

Before the acquisition

Distributable Income1

(S$’000)NAV per Unit1

(cents)DPU 1

(cents)

65,248 65,960

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

100.79 100.75

90.00

95.00

100.00

105.00

After the acquisition

For twelve-month period ended 31 December 2016

Note1 As if First REIT had purchased the Buton Property on 1 January 2016, and held and operated the Buton Property through to 31 December 2016.

8.47 8.54

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

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EFFECTS OF ENLARGED PORTFOLIO

Weighted Average Age of Properties (WAAP) (years)

Weighted Average Lease to Expiry (WALE) (years)

10.0 10.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

WALE of ExistingPortfolio

WALE of EnlargedPortfolio

10.19.5

0.0

5.0

10.0

WAAP of ExistingPortfolio

WAAP of EnlargedPortfolio

+3.3%

-5.7%

Effects on Weighted Average Lease Expiry and Weighted Average Age of Property

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EFFECTS OF ENLARGED PORTFOLIO

Total Gross Floor Area (GFA) (sqm)

314,311

338,245

250,000

275,000

300,000

325,000

350,000

GFA of ExistingPortfolio

GFA of EnlargedPortfolio

3,3733,533

2,000

2,500

3,000

3,500

4,000

Existing Portfolio Enlarged Portfolio

Total Number of Hospital Beds

+7.6%

+4.7%

Effects on Gross Floor Area and Number of Hospital Beds

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325.60 324.90 340.91

612.80617.98

796.70

1,052.27

1,172.02

1,268.311273.16

1,302.36

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ASSETS-UNDER-MANAGEMENT (S$’million)

GROWTH IN ASSET SIZE

CAGR: 16.7%

Post-acquisition assets-under-management

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THANK YOUQ&A

Mochtar Riady Comprehensive Cancer Centre

Imperial Aryaduta Hotel & Country Club

PROPERTY DETAILS

Type HospitalIntegrated

Hospital & MallHospital

Centre of ExcellenceEmergency Medicine, Internal Medicine and Neuroscience

Emergency & Trauma, Obstetrics, Gynaecology and Paediatrics

Emergency & Trauma, Gastroenterology

Land Area 2,837 sqm 66,060 sqm --

Gross Floor Area 7,604 sqm 55,368 sqm 15,709 sqm(2)

Purchase Price S$20.0 m S$70.0 m S$39.16 m

Appraised Value S$20.6 m(1) S$69.5 m S$42.7 m

Max no. of Beds / Saleable rooms

153 416 357

Year of Building Completion 2015 2014 2012

Lease Commencement Date 30 Dec 2016 14 Dec 2015 29 Dec 2014

Lease Terms15 years with option to

renew for 15 years15 years with option to


renew for 15 years

Lease Expiry Date 29 Dec 2031 13 Dec 2030 28 Dec 2029

FIRST REIT PORTFOLIO INDONESIA

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Siloam Sriwijaya

(1) Appraised by KJPP Rinaldi, Alberth, Baroto & Partners, as at 19 October 2016(2) The strata floor area of Siloam Sriwijaya is 15,709 sqm

Siloam Hospitals Kupang & Lippo Plaza Kupang

Siloam Hospitals Labuan Bajo

Type Hospital Hospital Hospital

Centre of Excellence Emergency & TraumaCardiology, Emergency & Trauma,

OrthopaedicsCardiology, Emergency & Trauma,

Neuroscience, Oncology

Land Area 7,990 sqm 9,025 sqm 2,489 sqm

Gross Floor Area 8,254 sqm 20,958 sqm 18,605 sqm

Purchase Price S$31.0 m S$97.3 m S$93.1 m

Appraised Value S$41.0 m S$124.7 m S$119.4 m


202 281 269

Year of Building Completion 2005 & 2008 2012 2013

Lease Commencement Date 28 May 2014 13 May 2013 22 May 2013




renew for 15 years

Lease Expiry Date 27 May 2029 12 May 2028 21 May 2028

Siloam Hospitals Purwakarta

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Siloam Hospitals Bali

Siloam Hospitals TB Simatupang


TypeIntegrated

Hospital & HotelHospital Hospital Hospital

Centre of Excellence Emergency & TraumaCardiology, Emergency & Trauma, Endocrinology

Emergency & Trauma, Gastroenterology, Oncology

Emergency & Trauma, Internal Medicine, Urology

Land Area 5,518 sqm 3,963 sqm 4,145 sqm 9,900 sqm

Gross Floor Area 36,051 sqm 14,307 sqm 37,933 sqm 11,125 sqm

Purchase Price S$83.6 m S$59.3 m S$170.5 m S$35.0 m

Appraised Value S$104.3 m S$73.7 m S$252.8 m S$48.7 m


238 beds / 200 rooms 360 334 114

Year of Building Completion

2011 2012 2010 2002

Lease Commencement Date

30 Nov 2012 30 Nov 2012 30 Dec 2010 31 Dec 2010





renew for 15 years

Lease Expiry Date 29 Nov 2027 29 Nov 2027 29 Dec 2025 30 Dec 2025

Siloam Hospitals Manado & Hotel Aryaduta Manado

Siloam Hospitals Makassar

Mochtar Riady Comprehensive Cancer Centre

Siloam Hospitals Lippo Cikarang

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Type Hospital Hospital Hospital Hotel & Country Club

Centre of ExcellenceCardiology, Emergency & Trauma, Neuroscience,

Orthopaedics

Cardiology, Emergency & Trauma, Orthopaedics,

Urology

Cardiology, Emergency & Trauma

--



Purchase Price S$94.3 m S$50.6 m S$16.8 m S$21.2 m

Appraised Value S$161.7 m S$96.0 m S$30.2 m S$41.8 m


274 215 160 190

Year of Building Completion

1995 1991 1977 1994

Lease Commencement Date

11 Dec 2006 11 Dec 2006 11 Dec 2006 11 Dec 2006


renew for 15 years 15 years with option to


renew for 15 years 15 years with option to

renew for 15 years

Lease Expiry Date 10 Dec 2021 10 Dec 2021 10 Dec 2021 10 Dec 2021

Siloam Hospitals Lippo Village

Siloam Hospitals Kebon Jeruk

Siloam Hospitals Surabaya

Imperial Aryaduta Hotel & Country Club

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Type Nursing Home Nursing Home Nursing Home Hospital



Purchase Price S$11.8 m S$11.5 m S$12.8 m US$13.0 m

Appraised Value S$10.0 m S$10.0 m S$16.8 m US$6.4 m


259 265 208 217

Year of Building Completion 2004 20061999 &

2013 (new extension building)

2010

Lease Commencement Date 11 Apr 2007 11 Apr 2007 8 Jun 2007 5 Aug 2011


renew for 10 years (Tenant has exercised the option)

10 years with option to renew for 10 years (Tenant has exercised the option)

10 years with option to renew for 10 years (Tenant has exercised the option)

10 years with option to renew

for 10 years

Lease Expiry Date 10 Apr 2027 10 Apr 2027 7 Jun 2027 4 Aug 2021

Pacific Healthcare Nursing Home @ Bukit Merah

Pacific Healthcare Nursing Home II @ Bukit Panjang

The Lentor Residence

Sarang Hospital

FIRST REIT PORTFOLIOSINGAPORE & SOUTH KOREA

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Documents

DISCLAIMER - First Real Estate Investment Trustfirstreit.listedcompany.com/newsroom/20170921_174331_AW9U_57... · DISCLAIMER This presentation ... Keraton Wolio Fort Source: First